Let's talk about money - The Finance Thread

[Shotokan_Symphony]

Roth IRA is essentially what I was talking about, but the government/banks CANNOT touch the money in it, at all.

[System_1]

Damn, I never knew about piggybacking for credit scores. My partner and I were talking about adding me on his credit card so we could use it for grocery shopping and we’d be able to divide the cost evenly.

I guess if you are an authorized user on somebody’s card then your credit score reaps the same benefits they have. He has almost an 800 score, and his card is in perfect standing and huge balance. I’ve read some stories where the credit score shot up really high and quickly. Going to get at that shit…could have better score by '09.

Started the piggy backing today…

I also messed up on that message, I meant to say it has a huge limit, not balance. I was added to his card, so we’ll see how long it takes for my credit to supposedly improve.

[CD_Vision]

IRA/Roth IRA are the same as a stock brokerage, you’re just getting advantages on tax if you agree not to use the money until retirement. People like to put their dividend paying investments in there since divs are normally taxed.

But see, there are other ways to avoid taxes too. One is by investing in companies that have more earnings retained in the business, and then by not selling your shares for a long time. Apple comes to mind.

Mutual funds can be a rip off. 75% of all managed funds do not outperform the S&P 500 because of the fees involved and how short term their strategies are. If you want to look for one, find one with at least a 5-10 year history of beating the market. Otherwise just buy SPY.

[Biggzy]

Anyone have some of their money in a CD? Was thinking of doing this, don’t know if its worth it though.

[CD_Vision]

Anyone have some of their money in a CD? Was thinking of doing this, don’t know if its worth it though.

You’d make a much better return in stocks buying right now than the fixed 4-5% you might get on safe bonds or CDs.

That said, regardless of the size of your investments, you should always have some percentage in fixed income like this. I try to make it a habit to never have less than 25%, but depending on how retarded the market is acting I might change that. In bull markets I may up that to half of my portfolio as a hedge. In way oversold markets I’ve been known to not keep any, just buying all the cheap stocks I can.

CDs I don’t especially care for since you get locked into that deal for many months. I prefer to use Vanguard’s Total Bond market index, trades under BND. You can sell and get your money anytime you need it, but be warned, there may be trade fees with your broker, so you sorta have to weigh that decision yourself.

[Biggzy]

You’d make a much better return in stocks buying right now than the fixed 4-5% you might get on safe bonds or CDs.

That said, regardless of the size of your investments, you should always have some percentage in fixed income like this. I try to make it a habit to never have less than 25%, but depending on how retarded the market is acting I might change that. In bull markets I may up that to half of my portfolio as a hedge. In way oversold markets I’ve been known to not keep any, just buying all the cheap stocks I can.

CDs I don’t especially care for since you get locked into that deal for many months. I prefer to use Vanguard’s Total Bond market index, trades under BND. You can sell and get your money anytime you need it, but be warned, there may be trade fees with your broker, so you sorta have to weigh that decision yourself.

Damn 5% on CDs? At my bank I think it was like 2.7.

[CD_Vision]

Damn 5% on CDs? At my bank I think it was like 2.7.

Wow, is it really that low now? I think inflation is higher than that per year. In other words, your money would actually be worth less later on at that rate. In any event, fixed income is not where you want to be putting money into if you have any respectable length of time to wait for your return.

[launch619]

Anyone have some of their money in a CD? Was thinking of doing this, don’t know if its worth it though.

A CD is always a safe bet. Just make sure you get something with a higher rate of interest. There’s some banks out there that offer 4, 5% rates right now. Anything lower and you risk losing to inflation. Historically it increases about 2 - 5% per year. Averages about 3.5% to give you a better idea.

You’ll break even in the end but the good thing is that there is a very good chance your money won’t lose its value.

Aside from that, deflation could even happen the way the economy is. If that happens then you have a nice little return without too much risk.

In the end, you could even think about just getting a high yield savings account though.

Edit: Not sure how old you are but Cd_Vision is right. Compound interest is definitely the best way to make the most of your money during your younger years.

[kimterran]

IRA/Roth IRA are the same as a stock brokerage, you’re just getting advantages on tax if you agree not to use the money until retirement. People like to put their dividend paying investments in there since divs are normally taxed.

But see, there are other ways to avoid taxes too. One is by investing in companies that have more earnings retained in the business, and then by not selling your shares for a long time. Apple comes to mind.

Mutual funds can be a rip off. 75% of all managed funds do not outperform the S&P 500 because of the fees involved and how short term their strategies are. If you want to look for one, find one with at least a 5-10 year history of beating the market. Otherwise just buy SPY.

so for someone like me who don’t know jack shit about stock markets and don’t want to risk money and just want to save, what do you recommend? i wanted to learn about stuff like this but it seems like a lot of work to me.

[CD_Vision]

so for someone like me who don’t know jack shit about stock markets and don’t want to risk money and just want to save, what do you recommend? i wanted to learn about stuff like this but it seems like a lot of work to me.

It is a lot of work, so if you’re not willing to do that, then don’t choose individual stocks. You would be better served just buying an index fund. When you get a share of SPY you’re buying every stock in the S&P all at once. Instant diversification.

Make a habit of a frequent deposit into your brokerage, and start a regular purchase, whatever you can afford, but try to keep your fees as low as possible. For example since Zecco would charge $4.50 I’d not buy less than 4 shares at a time.

As time passes you’ll get a better feel for what you’re doing and you may decide to learn more about it. For now this is the safest thing you could do.

[rcaido]

so for someone like me who don’t know jack shit about stock markets and don’t want to risk money and just want to save, what do you recommend? i wanted to learn about stuff like this but it seems like a lot of work to me.

Yeah im the same boat…

Im 30 years old what should i do Traditional IRA or Roth? Is there any risk to these?

[Silentness]

Stock market is back in business :rock:

I took a hit, but now my money is gradually going back up again.

[akumatrunigga]

It’s great, I like of how this thread is really gaining strength and respectability.

[CD_Vision]

Yeah im the same boat…
Im 30 years old what should i do Traditional IRA or Roth? Is there any risk to these?

This is a question I see a lot, but it just can’t be answered. There’s not enough information being given here. I have no idea what investments you’re going to have access to or what your fees will be. I can only tell you that if you think you might want to spend some of that money before retirement, well then there’s that risk of paying heavy tax penalties.

You might want to spend some time looking around on the internet for people’s opinions of your broker and choose that way. In my case I plug Zecco heavily, but you will read a lot of comments by traders who can’t stand the customer service. I don’t trade, I mostly just buy so the very low (sometimes nonexistent) fees are appealing to me.

It’s great, I like of how this thread is really gaining strength and respectability.

To tell the truth I was pretty pissed off about how I got treated on my own thread but I figure if I stay level headed and post some intelligent information it will get people to pay attention. This really is the greatest opportunity of our lives.

[Starhammer]

so for someone like me who don’t know jack shit about stock markets and don’t want to risk money and just want to save, what do you recommend? i wanted to learn about stuff like this but it seems like a lot of work to me.

I’m in the same boat as I’ve probably mentioned before…

It is a lot of work, so if you’re not willing to do that, then don’t choose individual stocks. You would be better served just buying an index fund. When you get a share of SPY you’re buying every stock in the S&P all at once. Instant diversification.

Make a habit of a frequent deposit into your brokerage, and start a regular purchase, whatever you can afford, but try to keep your fees as low as possible. For example since Zecco would charge $4.50 I’d not buy less than 4 shares at a time.

As time passes you’ll get a better feel for what you’re doing and you may decide to learn more about it. For now this is the safest thing you could do.

…And again, CD_Vision comes through with the knowledge. :tup:
once I get premium again, the positive rep-bombs shall certianly bless this thread.

Stock market is back in business :rock:

I took a hit, but now my money is gradually going back up again.

Korean whorehouses watch out!!! His pockets are getting full and Christmas isn’t that far away. HOE HOE HOE!!! J/J

-Starhammer-

[Starhammer]

I’ve a question. Gold. should I invest in it or not? another question is what are some good dividend paying stocks, bonds, or other investments I should look at? thanks in advance.

-Starhammer-

[AL_the_great]

I’ve a question. Gold. should I invest in it or not? another question is what are some good dividend paying stocks, bonds, or other investments I should look at? thanks in advance.

-Starhammer-

my friend’s a major investor and he says that you shouldn’t put more than 10-12% of what you have into precious metals. It’s fine to keep some aside but just dont over do it.

[xX_Deus_Xx]

subscribe to thread.

[CD_Vision]

I’ve a question. Gold. should I invest in it or not? another question is what are some good dividend paying stocks, bonds, or other investments I should look at? thanks in advance.

Gold is a poor investment. It only grows in value based on inflation. It cannot compound returns. Here’s some words of wisdom from Warren Buffett:

“It gets dug out of the ground in Africa, or someplace. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head.”

[Weeks]

Gold has a pretty shitty average rate of return. like what 2% since Napolean’s day?